Ethereum Stuck Below $4K Amidst Liquidity Grabs
Whales Dissipate While Traders Bet Against Upside
Ethereum’s price action suggests a deliberate confinement below the $4,000 mark, creating a loop of failed breakouts and liquidations for optimistic traders.
Engineered Resistance Zone
Despite nearly $1.9 billion in inflows into Ethereum ETFs since July 21st and a reduction of 200,000 ETH on exchanges, the cryptocurrency has failed to sustain its push above $4,000, trading at $3,871 at the time of writing.
Adding to the complexity, the count of whale wallets holding over 1,000 ETH has decreased by 100 in the past week, falling from 4,897 to 4,797.
A negative funding rate of -0.21% on Binance further signals that short-term traders are positioned against an upward move. This environment has led to over $100 million in Ethereum longs being liquidated within a 24-hour period, creating “easy wins” for short sellers and reinforcing a cycle of liquidity grabs and stalled progress.
Anticipation of Macro Volatility
Ethereum now hovers just 3.3% below the critical $4,000 resistance level as crucial macroeconomic events loom, including an upcoming FOMC meeting set to influence H2 policy. The ETH/BTC trading pair has seen a slight uptick, gaining 1.4% intraday, and Bitcoin Dominance (BTC.D) has retreated from recent highs, potentially indicating a rotation back into altcoins.
However, the persistent inability to decisively break and hold above $4,000 raises concerns about a potential repeat of previous patterns. If current market dynamics persist, where significant players “distribute into strength” and increase short positions near resistance, another cascade of long liquidations could be triggered.
While the surface suggests preparation for a significant upward move, on-chain data indicates a lack of accumulation by large holders. If this trend continues, Ethereum could face its third rejection at this key resistance level, potentially leading to a further price downturn. In comparison, Solana (SOL) has recently demonstrated strong upward momentum, breaking past $100, reaching $104.70 on July 29, 2025, according to CoinMarketCap data (CoinMarketCap), highlighting a stark contrast in current market sentiment.
